01. Fire Insurance including Allied Perils
Description of Fire Insurance Business :
It primarily aims at providing protection against financial losses arising out of the operation of fire or certain other specified perils. The subject matter of insurance are usually: (a) Building (b) Plant & Machinery (C) Furniture, Fixture and fittings (d) Goods and Merchandise. (e) Stocks of all kinds
Direct risks covered under standard fire insurance policy:
Accidental fire, lightning & Explosion (Boilers or gas used for domestic purposes only). The perils covered by the policy in its normal terms are:-
a) Fire: Whether resulting from explosion or otherwise.
b) Lightning: Whether fire results or not.
c) Explosion : Boiler used or gas used for domestic purpose only.
In addition to the above, this Policy also generally covers the following forms of damage :-
1. Damage during or immediately following a fire caused by (a) Smoke (b) Scorching (c) Falling walls and the like.
2. Damage caused by a fire brigade or other competent authority in discharge of their duty including ,
a) Damage caused by water or other extinguishing agents employed.
b) Damage caused by the blowing up of buildings to prevent the spread of a configuration.
3. Damage to property while being removed from a building or immediately after its removal from burning building caused by exposure to weather, provided the removal was justified.
Additional risks covered on payment of additional premium:
a) Riot and strike damage (RSD)
b) Explosion damage (including commercial purpose)
c) Malicious damage.
d) Earthquake
e) Spontaneous combustion.
f) Cyclone
g) Flood.
h) Busting or overflowing of tanks, pipes etc.
i) Subsidence
j) Land slide,
k) Articles dropping from aircraft
l) Subterranean fire
m) Sprinkler leakage
Remarks
The policy does not cover: - War, Undergoing any process or heating, Spontaneous fermentation,
Sentiment Value, Radio Active Contamination or Ionizing radiation .
All industrial risks(other than ratable under petrochemical tariff) having overall sum insured of BDT 50 crores and above under one policy and in one location in Bangladesh shall be eligible for industrial All risks Policy.
This insurance provide covers of all risks of loss or damaged to the Insured propertyother than by an excluded causes. Provided that the liability of the Insurer in respect of any one loss or in the aggregate in any one period of insurance shall in no case exceed.
EXCLUSIONS
1. Damage to the property insured caused by faulty or defective design materials or work man ship, inherent vice normal wear and tear, interruption of the water supply, gas, electricity or fuel systems ,collapse or cracking of building, corrosion rust extremes or pollution contamination ,theft except from a building and then only if there is violent or forcible entry to or exit such building, acts of fraud or dishonesty, inventory shortage misfiling or misplacing of information shortage in supply or delivery of materials or shortage due to clerical or accounting error. explosion, cracking, fracturing, collapse or overheating of boilers economizers vessels tubes or pipes nipple leakage or the failure of welds of boilers, mechanical or electrical breakdown or derangement of machinery or equipment bursting, overflowing, discharging or leaking of water tans apparatus or pipes when the premises are empty or disused ,coastal or river erosion, subsidence ground heave or landslip, normal settlement or bedding down of structure ,wind rain hail frost snow flood sand or dust to movable property in the open or in open sided buildings or to fences and gates ,the freezing solidification or inadvertent escape of molten material.
2.Damage caused by or arising from Any willful act or willful negligence on the part the insured or any person acting on his behalf, cessation of work delay or loss of market or any other consequential or indirect loss of any kind or description whatsoever
3.Damage occasioned directly or indirectly by or through or in consequence of any of the following occurrence, namely, war invasion act of foreign enemy hostilities or warlike operations (whether war be declared or not) civil war mutiny civil commotion assuming the proportions of or amounting to a popular rising military rising insurrection rebellion revolution to military or usurped power ,acts of terrorism committed by person or persons acting on behalf of or in connection with any organization. This Exclusion A3 (c) shall not apply to damage by fire, For the purpose of this Exclusion A3 (c) “terrorism” means the use of violence for political for ends and includes the use of violence for the purpose of putting the public or any section of the public in fear, permanent or temporary dispossession resulting from confiscation nationalisation commandeering or requisition by any lawfully constituted authority, permanent or temporary dispossession of any building resulting from the unlawful occupation of such building by any person, the destruction of property by order of any public authority.
4.Damage directly or indirectly caused by or arising or in consequence of or contributed to by, nuclear weapons material, ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear from the combustion of nuclear waste from the combustion of nuclear fuel.
